Scott's Liquid Gold-Inc.

For Q2 2026, Horizon Kinetics recorded GAAP management and advisory revenues of $18.8 million, essentially flat versus Q2 2025. Operating income was $3 million, down 19% year over year, and operating expenses were $16.1 million, up 5.5% due to severance, compensation increases, and overlapping rent/occupancy costs from moving offices. The company reported a quarterly net loss of approximately $113 million, including $95 million tied to redeemable noncontrolling interest, resulting in a net loss attributable to HKHC shareholders of $18.4 million, or $0.99 per share. AUM was $10.8 billion at June 30, up from $9.6 billion at December 31, 2025 but down from $11.4 billion in Q1, with changes driven largely by TPL and bitcoin-related securities. For the first half, management said GAAP management and advisory fees were $37 million, down 1.8%, while adviser-only management and advisory fee revenue was $59.0 million versus $41.7 million a year earlier; GAAP net income for the 6 months ended June 30 was $54.2 million, or $2.91 per share. Cash was $34.3 million, the investment portfolio was $105 million, digital assets were $8.3 million, and the board declared a $0.13 per share dividend payable September 10, 2026. Management did not give formal forward revenue or EPS guidance, but said it expects some third-quarter expense pressure from a full quarter of duplicate rent as the office move completes, and expects continuing volatility from incentive fees and unrealized gains/losses.

Peter Doyle focused on continuity and confidence after Murray’s passing, saying the firm has highly talented people and that the analytical process and idea flow have remained intact. He spent much of his remarks arguing that Horizon Kinetics’ approach—owning high-return businesses, staying patient, and avoiding crowded index-driven thinking—remains intact and even benefits from market inefficiencies. His tone was reflective but upbeat, especially around the firm’s ability to identify overlooked opportunities and the expectation that the organization will continue to flourish.

Mark Herndon emphasized the quarter’s core financials and the drivers behind them: $18.8 million of GAAP management and advisory revenue, $3 million of operating income, and $16.1 million of operating expenses. He explained that revenue growth in ETFs (+30%) and SMAs (+8.6%) was offset by a 17% decline in mutual fund revenue, while office relocation and compensation items lifted expenses. He also highlighted balance-sheet strength with $34.3 million of cash, a $105 million investment portfolio, $8.3 million of digital assets, no third-party debt, and the newly declared $0.13 dividend. He cautioned that quarterly results will remain volatile because of unrealized investment swings and incentive-fee timing.

The main analyst-style questions focused on growth, distribution, and where new investments get placed. On growth, management said mutual fund outflows were driven mainly by one large redemption that had been initiated while Murray was still alive, and that future handling might favor in-kind redemptions. On marketing, Peter Doyle said the firm is shifting to targeted ETF marketing using databases and outreach to holders of similar products, with a readout expected by mid-October or November. On new investments, management said allocation is handled case by case based on fit, timing, liquidity, tax consequences, and whether the opportunity belongs in pooled vehicles or individual accounts.